Work it Out Blog

Department of Labor Overtime Regulations Put on Hold At the Eleventh

Nov 23, 2016

The Department of Labor’s new overtime regulations, scheduled to become effective December 1, 2016, has been halted by a nationwide injunction issued by Judge Amos Mazzant, United States District Court Judge for the Eastern District of Texas.  Under the new regulations, an employee would have to make a minimum of $913 per week in order to qualify for the administrative, professional, or executive exemptions from overtime. Judge Mazzant held that the plaintiff’s established a prima facie case that the Department of Labor exceeded its authority in crafting the regulations.

Judge Mazzant enjoined the regulations, reasoning that the states and businesses challenging the regulations would suffer irreparable harm if they went into effect before the legal challenge had been completed. “A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” Judge Mazzant stated. Furthermore, the judge explained that“[d]ue to the approaching effective date of the final rule, the court’s ability to render a meaningful decision on the merits is in jeopardy.”

The important take away is that employers have been given a reprieve and the new regulations need not be complied with on December 1, 2016.  Your Day Ketterer lawyers will continue to monitor developments and keep you informed.

The content of this blog is for informational purposes only and is not intended as legal advice for any purpose. This blog is not intended to present an exhaustive summary of all applicable laws, or to take the place of legal advice.  If you have any questions regarding the law, please contact us for assistance.